Questions

The classical economists believed in the existence of full employment in the economy. To them, full employment was a normal situation and any deviation from this regarded as something abnormal. According to Pigou, the tendency of the economic system is to automatically provide full employment in the labour market when the demand and supply of labour are equal.

The meanings of the given words are as follows:
Nefarious: (typically of an action or activity) wicked or criminal
Sloppy: careless and unsystematic; excessively casual
Flurry: a small swirling mass of something, especially snow or leaves, moved by sudden gusts of wind

Unassertive: (of a person) not having or showing a confident and forceful personality

Ignoble: not honourable in character or purpose
Modest: unassuming in the estimation of one's abilities or achievements
Subtle: (especially of a change or distinction) so delicate or precise as to be difficult to analyse or describe
Gregarious: (of a person) fond of company; sociable
Magnanimous: generous or forgiving, especially towards a rival or less powerful person
Iniquitous: grossly unfair and morally wrong
Atrocious: horrifyingly wicked
Therefore, it can be observed that option E i.e.

‘iniquitous, atrocious’ forms a synonym- synonym pair of ‘nefarious’.

Subdued means restrained in style or quality. Softened means being or made softer or less loud or clear.
Dampened means to suppress or constrain so as to lessen in intensity. Quite means to a degree (not used with a negative).
Silenced means reduced to silence. The reaction of the authorities is already mentioned, i.e. muted. All the options, except 'quite', are synonymous with 'muted'. But the reaction was toned-down. Hence, the correct answer is 1.